The 10 Quickest Dividend Paybacks

In the U.S. stock market, 10 stocks were found to have dividend payback periods under 15 years. Unfortunately, buyers of these stocks would have to wait at least 11 years for the dividends of any of these stocks to pay back their initial investment. The fastest paybacks are not fast enough to ignore capital appreciation when judging stock investments.
Payback Period Calculations
The number of years it takes for an investment to pay you back is called the payback period. Payback period estimates depend on earnings growth and dividend payout ratios. Payout ratios were assumed constant, and dividend yield was projected by taking the minimum of the following: Earnings growth over the past five years Analyst estimates for earnings growth for the next five years Return on equity times the earnings reinvestment rate The minimum of these measures was then used to estimate dividend growth for the next three years.... Read more